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Illinois Franchise Tax: Amnesty on the Horizon!

By: Joan Helwig, COGENCY GLOBAL on Thu, Sep 19, 2019

Illinois Franchise Tax Amnesty is on the Horizon for Fall 2019Please note the tax amnesty program discussed below has ended.

On June 5th, 2019, Illinois Governor JB Pritzker signed Senate Bill 689 (Public Act 101-0009) into law. Effective as of its signing, the legislation establishes a new franchise tax amnesty program and institutes changes that will ultimately end the corporate franchise tax in Illinois.

With the amnesty dates approaching (along with some other business-friendly changes taking place in Illinois), it might be a good time to consider reinstatement.

Franchise Tax Amnesty Program

The amnesty program introduced in S.B. 689 applies for taxpayers owing any franchise tax or license fee imposed by Article XV of the Business Corporation Act of 1983.

From October 1st, 2019 to November 15th, 2019, the Illinois Secretary of State (per 805 ILCS 8/5-10) will forgo collection of applicable interest or penalties, as well as civil/criminal prosecution, upon payment of all franchise taxes and license fees due for any taxable period ending after March 15th, 2008 and/or before June 30th, 2019.

Illinois Franchise Tax Exemptions and Eventual Elimination

Beyond the amnesty program slated for this fall, additional amendments to 805 ILCS 5/15.35 (domestic corporation franchise taxes) and 805 ILSC 5/15.65 (foreign corporation franchise taxes) create franchise tax exemptions starting in 2020 and increase each year until the tax is ultimately eliminated.

Refer to the full text of the bill for additional details.


This content is provided for informational purposes only and should not be considered, or relied upon, as legal advice.

Topics: Company Formation and Filing Considerations